Overview
Required Minimum Distributions (RMDs) are the IRS's mechanism for eventually collecting tax on money that's been growing tax-deferred for decades. Once you reach the applicable age, you must withdraw at least a minimum amount from most retirement accounts each year, whether you need the income or not — and the penalty for missing one is steep.
Why It Matters
RMDs aren't optional, and they don't ask whether you need the money. They can push you into a higher tax bracket, trigger or increase IRMAA surcharges, and increase the taxable portion of your Social Security — all in the same year, since RMD income counts toward MAGI for every one of those calculations. Most of the other strategies in this guide (Roth conversion ladders, QCDs, withdrawal sequencing) exist specifically to reduce or manage the impact of RMDs before they start or once they do.
How It Works
- RMDs apply to traditional IRAs, 401(k)s, 403(b)s, and most other pre-tax employer retirement accounts. Roth IRAs have no RMDs during the original owner's lifetime.
- The amount is calculated by dividing your prior year-end account balance by an IRS life-expectancy factor from the applicable table (the specific table depends on whether your spouse is your sole beneficiary and more than 10 years younger).
- If you have multiple IRAs, you calculate the RMD for each separately but can withdraw the total from any one or combination of them. 401(k)s generally require separate withdrawals from each plan.
- A QCD (see that guide) can satisfy some or all of your RMD while excluding the amount from taxable income entirely.
2026 Key Numbers
- RMD start age: 73 for those born 1951–1959; rising to 75 for those born 1960 or later (effective 2033).
- Penalty for a missed or shorted RMD: 25% excise tax on the amount not withdrawn, reduced to 10% if corrected within two years.
- The first RMD can be delayed until April 1 of the year after you turn the applicable age, but doing so means taking two RMDs in that second year — often pushing you into a higher bracket that year.
Common Mistakes
- Delaying the first RMD to the following April without realizing it doubles up with the second year's RMD, creating an unusually large taxable year
- Not recalculating the RMD amount each year based on the actual prior year-end balance — using a stale estimate
- Forgetting that inherited IRAs (for most non-spouse beneficiaries under the SECURE Act's 10-year rule) have entirely different RMD rules than your own accounts
- Missing the deadline and only discovering the 25% excise tax penalty at tax-filing time, rather than catching it before year-end
Sources
- IRS Publication 590-B — Distributions from Individual Retirement Arrangements
- Retirement Budget Calculator — Required Minimum Distributions Explained (2026)
- American Cancer Society Planned Giving — QCD/RMD coordination rules
This is general education, not personalized advice. RMD calculations depend on exact birthdate, account types, and beneficiary designations — confirm your specific figures with your account custodian and a tax professional.